Shunfeng Photovoltaic Confirms Wuxi Suntech Acquisition Delay

Shunfeng Photovoltaic has confirmed that the acquisition of Wuxi Suntech will not be completed in line with its original timeline.

When the deal was announced in November 2013, the company said that a notice containing details of the transaction would be circulated by 20 February, 2014. The document was to include the restructuring plan and financial details of Wuxi Suntech and the new group of companies. It was also scheduled to call an extraordinary general meeting of shareholders to vote on the deal.

In a statement to the Hong Kong Stock Exchange on Thursday, Shunfeng said this would now be released on or before 13 March 2014.

Shunfeng said “additional time is required for the Company to finalise the content of the Circular”.

Suntech Power Holdings, its former manufacturing subsidiary Wuxi Suntech and three other former Suntech Power Holding’s companies are currently in dispute over the ownership of Wuxi Suntech’s equity prior to the initiation of Shunfeng’s acquisition.

A Singapore court ruling ordered Suntech Singapore to pay Suntech Power Holdings’ immediate subsidiary Power Solar System (PSS) nearly US$264 million. PSS is currently in liquidation. PwC’s John Ayres, the company’s administrator welcomed the award.

"The recovery actions will continue with focus on an investigation of the purported transfer of equity interest of Suntech Power Japan Corporation and Suntech Singapore to Wuxi Suntech Power Co., Ltd. and the purchase of PSS's equity interest in Wuxi Suntech by Jiangsu Shunfeng Photovoltaic Technology Co., Ltd, a subsidiary of a Hong Kong listed company Shunfeng Photovoltaic International Ltd,” he said.